I recently purchased a new home in Maricopa County, AZ and I want to know what I will be taxed by the state and federal if I sell before my 2 year? Will it be 20% Fed and 20% State?
Assuming that this is a rental property and you have capital gains, your federal rate is 15% and your state will be the AZ rate based on your filing status (married, single etc.) You also might have Federal recapture taxes (on depreciation) for Federal. Top rate is 5.04% in AZ. Get the instructions to AZ form 140 to see which tax rate applies to you.
The rates I stated above would apply in your case since you lived there > 12 months, except no depreciation recapture issues since it was your principal residence. If you meet one of the exceptions to NOT having to meet the 24 month test, you may be able to exclude part of the gain. Why are you selling the home?
Assuming that this is a rental property and you have capital gains, your federal rate is 15% and your state will be the AZ rate based on your filing status (married, single etc.) You also might have Federal recapture taxes (on depreciation) for Federal. Top rate is 5.04% in AZ. Get the instructions to AZ form 140 to see which tax rate applies to you.
this is currently my primary residence and I am thinking about selling it now. But wanting to know how much I will be loosing by not waiting 2 yrs.
The rates I stated above would apply in your case since you lived there > 12 months, except no depreciation recapture issues since it was your principal residence. If you meet one of the exceptions to NOT having to meet the 24 month test, you may be able to exclude part of the gain. Why are you selling the home?
To purchase a home with property and out of the HOA system. Where can I find the exceptions you speak of , living in your home<24 months?